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1. Which of the following problems arises where there are more than one technically possible methods of production

A. Where to produce
B. for whom to produce
C. how to produce
D. what to produce

2. Visible balance is also known as

A. terms of trade
B. balance of payments
C. balance of trade
D. capital balance

3. A shift in the demand curve indicates

A. exceptional demand
B. change in demand
C. change in quantity demanded
D. elasticity of demand

4. If a 6% decrease in price results in more than 6% decrease in quantity supplied, supply can be regarded as

A. elastic
B. unitary elastic
C. perfectly inelastic
D. perfectly elastic

5. A condition for consumer utility maximization is

A. equality of the ratio of marginal utilities and the ratio of prices
B. equality of the ratio of average utilities and the ratio of prices
C. equality of the marginal utility to total utility ratio for both commodities
D. total utility and marginal utility must be zero

6. Which of the following best describes the mode? The

A. observation with the highest frequency
B. average of two middle numbers
C. item that occupies the middle position
D. difference of two extreme values

7. Where a commodity takes an insignificant proportion of the consumer’s income, demand for it will be

A. unitary elastic
B. price inelastic
C. fairly elatic
D. income inelastic

8. A demand schedule shows the quantities of goods that are

A. bought at given price at a time
B. supplied at given prices at a time
C. produced at given prices at a time
D. reserved for future consumption

9. The demand curve for a commodity is downward sloping because the consumer will pay

A. less as the marginal utility falls
B. more as the marginal utility falls
C. less as the total utility falls
D. more as the average utility falls

10. A decrease in the demand for a product X resulted in a decrease in the demand for another product Y. The demand for X and Y is

A. derived
B. composite
C. joint
D. competitive

11. Any price below the equilibrium price will lead to

A. increase in supply
B. excess demand
C. equality of demand and supply
D. decreases in demand

12. The allocation of goods and services in a free market economy is performed by

A. the price system
B. the banking system
C. the central planning body
D. government budgets

13. Given the demand function Qd=20-$\frac{1}{2P}$. What is Qd when P is 12?

A. 6 units
B.10 units
C.12 units
D.14 units

14. If a particular consumer derives total utility of 22 utils having consumed 4 units of a given product, his average utility will be

A.88 utils
B.18 utils
C.5.5 utils
D.3.5 utils

15. The law of diminishing marginal utility applies to a

A. firm which minimizes cost
B. consumer who maximizes satisfaction
C. producer who maximizes marginal product
D. consumer who minimizes total utility

16. Why is the law of diminishing returns a short run phenomenon?

A. all inputs are fixed
B. all inputs are variable
C. some outputs are variable
D. some inputs are variable

17. Which of the following is capable of increasing the population of a country?

A. increase in birth rate
B. increase in death rate
C. poor medical facilities
D. decrease in birth rate

18. In the firm’s production process, marginal cost

A. falls continuously throughout
B. falls and later rises
C. remains unchanged throughout
D. rises and later falls

19. If a firm’s price is less than average cost but more than part of variable cost, the firm is covering

A. all of its fixed cost and variable cost
B. all of its fixed cost and part of variable cost
C. all of its variable cost and part of fixed cost
D. part of its fixed cost and part of varible cost

20. An arrangement in which the debts of a company can only be paid from its own assets implies

A. unlimited liability
B. transferred liability
C. limited liability
D. capital liability

21. One reason why small scale businesses are very common in West Africa is that

A. they can easily float shares
B. their management boards are easily formed
C. their initial capital is easy to rise
D. their dividend payments are very regular

22. A public limited company could finance its operations through

A. government taxes
B. equity shares
C. dividend payments
D. import duties

23. The factor of production which takes the initiative in combining resources for production is known as

A. capital
B. land
C. entrepreneur
D. labour

24. The type of monopoly that develops as a result of granting patent right is known as

A. natural monopoly
B. state monopoly
C. legal monopoly
D. discriminating monopoly

25. Which of the following is a function of a retailer?

A. Banking services
B. Hoarding services
C. Storage services
D. Sales services

26.Which of the following is a function of a retailer?

A. Banking Services
B. Hoarding services
C. Storage services
D. Sales services

27.The difference between the number of immigrants and emigrants is

A. natural growth rate
B. natural increase
C. net migration
D. census

28. All of the following is the features of optimum population except

A. full employment of available resources
B. unlimited amount of unexploited resources
C. maximum per capita production and income
D. high standard of living

29. The financial institution that specializes in risk spreading is called

A. an investment bank
B. a development bank
C. an insurance company
D. the stockexchange

30. The following are means of reducing the population of a country except encouraging

A. emigration
B. family planning
C. early marriage
D. sex education

31. Which of the following features best describes peasant agriculture in West Africa? It

A. specializes in the production of one crop
B. involves the use of small farm holdings
C. is a capital-intensive system of farming
D. is mostly associated with tree crops

32. One of the problems facing industrial development in West African countries is

A. inadequate large market
B. inadequate infrastructure
C. inadequate supply of labour
D. unavailability of natural resources

33. In a situation where the finished product of an industry is fragile, bulky and perishable, such an industry should be located close to its

A. raw materials
B. market
C. labour supply
D. power supply

34. If Y = income, C = Consumption, I = Investment, X = Export and M = Import, then national income is

A. Y = C – I + (x +m)
B. Y = C + I + (x + m)
C. Y = C +I +(X – M)
D. Y =C + I + (m – x)

35. The national income is the

A. Gross Domestic Product at market prices
B. Gross National product at factor cost
C. Net National Product at factor cost
D. Net National Product at market prices

36. When depreciation is deducted from Gross National Product, the result is

A. total national income
B. gross domestic product
C. net national product
D. net domestic product

37. Mr Akpoti has meat and wants maize, while Mr, Adama has maize and wants meat.transation is possible because of

A. bank deposit
B. joint demand
C. scale of preference
D. double coincidence of wants

38. Which of the following is not a form of money?

A. coins
B. bank notes
C. bank balance
D. bank deposit

39. A price index as a statistic, measures

A. how the value of money changes over time
B. the volume of currency in the economy
C. the exchange rate of a country’s currency
D. the composition of goods and services

40. The different between birth rate and death rate is known as

A. demographic transition
B. natural growth rate
C. migration rate
D. fertility rate

41. In open market operations, what the Central Banks sells or buys are

A. shares
B. debentures
C. securities
D. equities

42. The following are reasons for failure of agricultural policies in West Africa except

A. vague policy statements
B. negation of polices
C. creation of agro-service stations
D. provision of obsolete implements

43. A situation in which the estimated government revenue is less than the proposed expenditure for a given year can be described as

A. surplus budgeting
B. supplementary budgeting
C. balanced budgeting
D. deficit budgeting

44. An excise tax is imposed on goods

A. smuggled into the country
B. manufactured locally
C. imported into the country
D. seized by custom officials

45. Which of the following will not retard economic development in West Africa?

A. dependence on imports
B. population control
C. high level of illiteracy
D. low level of savings

46. When there is improvement in a country’s terms of trade, it means that the country’s

A.exports are cheaper relative to imports
B. imports are cheaper relative to exports
C. volume of imports has declined
D. volume of exports has declined

47. Which of the following is true about import substitution? It

A. helps in increasing exportation
B. is meant to reduce exportation
C. enables a country to curtail importation
D. enables a country to improve on importation

48. Balance of payments problem can be corrected through

A. increasing foreign reserves
B. increasing domestic borrowing
C. import promotion strategies
D. export promotion strategies

49. One of the reasons why government may erect a trade barrier is to

A. control foreign currencies
B. protect infant industries
C. promote importation
D. diversify the economy

50. Which of the following is not a function of the West African Development Bank?

A. Promotion of both private and public investments in member states
B. Financing and executing projects in member states
C. Promotion of social development of member states
D. harmonization of oil prices to the advantage of member states

ANSWER